Selling Co-Owned Property in Kentucky to Pay Funeral and Property Taxes

Short answer

If you and others co-own real property in Kentucky, whether you can sell the property quickly to pay funeral expenses and overdue property taxes depends on how the title is held, whether an owner died, and whether all co-owners agree. If all owners agree, a voluntary sale is straightforward. If not, you may need a court-ordered partition or probate administration to sell a decedent’s share. Liens (mortgages, tax liens) must be paid from sale proceeds. This article explains the common paths and practical steps under Kentucky law.

Detailed answer — step-by-step under Kentucky law

1. Identify how the property is titled

Title determines who has the legal right to sell.

• Joint tenants with right of survivorship: When one owner dies, ownership passes automatically to the surviving joint tenant(s). A surviving joint owner can usually sell the property without probate.
• Tenants in common: Each owner holds an individual fractional share that can be sold by that owner. A single co-owner cannot force a sale by private contract; they can seek a court-ordered partition (see below).
• Tenancy by the entirety (married couples): This form gives spouses special protection; a spouse typically cannot sell or encumber property without the other spouse’s participation.

2. If an owner died: check whether probate or estate administration is required

If the deceased owned the property solely or owned a fractional share as tenant in common, the deceased’s share becomes part of the estate. Funeral expenses and the decedent’s debts generally are paid from estate assets through probate or a similar administration. If the decedent left only a small estate or the property passed outside probate (e.g., joint tenancy with right of survivorship or a transfer-on-death designation), the estate process may be simpler or unnecessary.

Probate gives the personal representative (executor/administrator) the authority to collect assets and pay debts. A sale of estate real property may require court approval unless the will or statute gives the personal representative power to sell without a separate order.

3. If co-owners agree, sell voluntarily

The quickest route is unanimous consent. Steps:

1. Obtain a current title report or deed at the county clerk/recorder to confirm ownership and liens.
2. Get an appraisal or comparative market analysis to set price expectations.
3. Agree in writing (all co-owners) on listing, price, and how net proceeds will be divided and used to pay funeral bills and taxes.
4. Close the sale and pay off mortgages, property tax liens, and other encumbrances from the proceeds; distribute remaining funds per the owners’ agreement or ownership shares.

4. If co-owners do not agree: partition action

When one or more co-owners refuse to cooperate, Kentucky law allows a co-owner to file a partition action in the Circuit Court. The court can order either:

• Partition in kind: physically divide the land, when feasible; or
• Partition by sale: order the property sold and divide the proceeds among the owners according to their shares.

Partition actions take time and cost money. The court will also account for liens, mortgages, and legitimate claims (like unpaid property taxes and funeral-related debts owed by an estate) before distributing net proceeds.

Practical note: Often a partition action results in a court-ordered sale and distribution—useful where urgent payment is needed but co-owners won’t cooperate.

5. How funeral expenses and property taxes get paid

• Funeral expenses: If a decedent’s estate exists, funeral expenses are usually paid as estate administrative expenses, ahead of many other claims. If the property is jointly owned and the decedent’s share passes outside probate, claimants may still look to estate assets for payment.
• Property taxes: Unpaid property taxes attach as a lien on the real estate. Prior to or at closing, property tax liens must be satisfied from sale proceeds or otherwise cleared; a buyer will typically demand clear title.

6. Short-term alternatives while you sort title or court steps

If you need immediate funds for funeral costs or tax bills:

• Ask co-owners for a temporary loan or agreement to draw from joint funds.
• Contact the county tax office to learn about payment plans or short grace periods to avoid tax sale or penalties.
• Consider a short-term bridge loan or a loan secured by the owner’s share (only if a lender will accept that security).

7. Typical timeline and costs

Voluntary sale: often 30–90 days from listing to closing (varies).

Partition action or probate sale: months to over a year, depending on court schedules, complexity, and creditor notice periods. Court costs, attorney fees, and potential marshaling of assets will reduce net proceeds.

8. Practical checklist (what to gather and who to contact)

1. Deed and title documents (from county clerk/recorder).
2. Death certificate, if an owner died.
3. Mortgage statements and tax bills.
4. Any written agreements among owners.
5. Contact the county property valuation administrator or tax office for exact tax amounts and deadlines.
6. Obtain a current title search or contact a title company before selling.

9. Where to find official Kentucky resources

• Kentucky Revised Statutes and searchable laws: https://apps.legislature.ky.gov/statutes/
• Kentucky Court of Justice — general court and probate information: https://kycourts.gov
• County property tax and clerk/recorder offices — search your county website (county offices handle tax bills, deeds, and recording).

Hypothetical example: Two siblings are tenants in common on their late parent’s house. The parent’s funeral cost $8,000; property taxes of $2,000 are due. Sibling A wants to sell to cover costs; Sibling B refuses. Sibling A can either:

• Offer a buyout to Sibling B for their share and sell the house with full cooperation; or
• File a partition action in Circuit Court asking the court to order the property sold and the proceeds distributed, with liens (taxes, mortgage) paid first. If the decedent’s estate is responsible for funeral costs, the estate representative should seek to administer the estate and pay funeral bills from estate assets before distribution.

Helpful Hints

• Start by pulling the deed at the county recorder or clerk to confirm exact ownership language (key words: “joint tenants,” “with right of survivorship,” “tenants in common”).
• Get a title report early. It shows mortgages, liens, and tax liens that will need to be resolved at closing.
• Communicate in writing with co-owners. A written agreement to sell avoids court and speeds payment of urgent bills.
• Contact the county tax office immediately if you can’t pay taxes—many counties offer payment plans or can explain consequences of nonpayment.
• If a sale is likely, obtain an appraisal so owners understand expected net proceeds after liens and costs.
• Consider mediation for disputes among co-owners—cheaper and faster than litigation.
• When someone has died, identify and appoint a personal representative quickly so estate creditors (including funeral providers) can be addressed properly.
• Keep precise records of all payments and agreements—these documents matter in probate or partition proceedings.